Central banks all over the world are exploring the possibilities of creating their own national digital currencies based on Bitcoin’s “blockchain” technology. This digital currency “movement” was first seen in Tunisia but has made its way to Ukraine, Senegal and Sweden.
Ukraine Joins a Growing Number of Central Banks Considering Bitcoin Technology
Ukraine just joined a growing number of central banks getting in on the electronic money concept. As part of the nation’s Cashless Economy project, the National Bank of Ukraine (NBU) is to issue a blockchain-based digital version of the Hryvnia by next year. At first the currency will circulate alongside its physical version.
The move isn’t surprising, as NBU has in September stated it was “interested in further development of high-tech financial markets in Ukraine as it will positively influence the implementation of the Cashless Economy project”.
Riksbanken in Sweden, the world’s oldest central bank, is considering the same move as the country has seen a decline in cash use, according to the Financial Times. It’s still in discussions whether digital currencies should complement notes and coins, or replace them. Soon the country may witness the introduction of an “ekrona” (“e-coin”), a blockchain-based digital version of the Swedish Krona.
The Bank of England and the Bank of Canada have reportedly discussed issuing their own digital currencies using blockchain technology. The immense cost reduction in transactions could, according to a report from the Bank of England, boost GDP by roughly 3%.
Tunisia Was the First to Use Blockchain Technology on its National Currency
Late last year, Tunisia had over half a million people using its digital currency, eDinar. The country’s post office, La Poste Tunisienne, then announced it would partner with Monetas and DigitUs to integrate the country’s digital currency with blockchain technology. It was the first one to do so.
Following Tunisia’s footsteps, Senegal announced in early November it was also going to get their digital currency eCFA integrated with blockchain technology as well. The new currency is to circulate alongside the country’s fiat currency CFA Franc, just like in Tunisia. Unlike bitcoin, these currencies are issued solely by a country’s central bank.
Do you think other countries will soon announce their own blockchain-based digital currencies?
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